In the wake of the collapse of the Silicon Valley Bank, the stock market took a bit of hit Mondaymorning.
Our newsroom spoke with local financial advisor Howie Pentony who says it’s not a surprise that this is having a negative impact on the market.
“Obviously the bank stocks went down. It may be time to go shopping for good banks,” Pentony said. “But, it’s not a good thing when a bank fails, especially a huge one like this. That’s just not good for anybody.”
Pentony says it may take time to figure out the exact issues that led to the bank’s demise. He says poor management appears to be one factor, but also says “that’s an easy out.”
However, Pentony says what happened to $2.9 billion Silicon Valley Bank is not representative of the banking industry overall.
“It’s never good when anything fails, but when a bank fails that’s bad. This is a big deal and you’ll see things over the next couple of weeks discussing about a bank failure because it’s not something we see often.”
“Generally speaking, most banks are healthy so hopefully this is just an isolated incident.”
Pentony is the founder and president of Pentony Capital Management in Portersville.
